What is the difference between indemnify hold harmless and defend?

What does it mean to defend and hold harmless?

This agreement is used to establish protection from liabilities, losses, claims, or damages for one or both of the parties. A hold harmless clause provides that an organization or individual will not be held liable for any injuries or damages caused to the other party.

What is defend in the indemnification clause?

A contractual indemnification provision often begins with a statement that a party shall “indemnify, defend and hold harmless” one or more other parties from and against losses, damages, etc. arising from or relating to certain acts, omissions or occurrences.

What are the two purposes of indemnity?

Such an agreement protects the noteholder's ability to enforce the loan. An indemnity agreement also alleviates the borrower of all financial liability for executing a new promissory note to replace the one that was lost or damaged.

What is the standard indemnification and hold harmless clause?

An agreement whereby the first party (the indemnitor) agrees to hold a second party (the indemnitee) harmless from tort liability arising out of the indemnitor's negligent act or omission.

What are the two types of indemnification?

What is an example of indemnify and hold harmless?

The Contractor shall defend, indemnify and hold the County, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by ...

Who is protected in a hold harmless agreement?

A hold harmless clause is used as a release of liability in a contract that protects one party from injury or property damage caused by another party. By signing the clause, the other party is agreeing not to hold business owners legally responsible for the risks involved in certain services.

What is an example of a hold harmless agreement?

Examples of Hold Harmless Agreements

An apartment lease may have a hold harmless clause stating that the landlord is not responsible for any damage caused by the tenant. A homeowner hiring a roofer might request a hold harmless agreement to protect against a lawsuit if the roofer falls off the roof.

Why is the duty to defend greater than the duty to indemnify?

In many instances, particularly construction defects and other types of long-term exposure or continuous damage claims, the duty to defend, typically unlimited, is more valuable than the duty to indemnify which is ordinarily subject to limits.

What is a defense and indemnity agreement?

Defense and indemnity clauses are routine devices used in construction contracts to shift responsibility for potential risks from one project participant to another. The terms defend and indemnify often appear in the same clause, but they are each typically understood to impose different obligations.

What does it mean legally to indemnify someone?

indemnify. v. to guarantee against any loss which another might suffer. Example: two parties settle a dispute over a contract, and one of them may agree to pay any claims which may arise from the contract, holding the other harmless. See also: hold harmless.

What is another term for hold harmless clause?

A hold harmless clause is also called a release of liability, a waiver of liability, a save harmless clause, or a hold harmless letter or release.

Should I have an indemnification clause?

While all contracts should be somewhat two-sided and have clauses protecting the rights of your client, YOUR CONTRACT is mainly there to safeguard you. Thus, it's perfectly fine to have an indemnification clause that better protects you from third-party claims.

What is the opposite of indemnify?

Opposite of to compensate for loss or damage. keep. lose. take. seize.

What are the four methods of indemnity?

What is an example of indemnification clause?

This clause is often used when one party is at a greater risk of loss and wants to protect itself. For example, a manufacturer may include a one-sided indemnification clause in a contract with a distributor to protect itself from any losses resulting from the distributor's actions.

What are the two rights of indemnity holder?

Rights of an Indemnity Holder

1) The indemnifier will have to pay damages which the indemnity holder will claim in a suit. 2) The indemnity holder can even compel the indemnifier to pay the costs he incurs in litigating the suit.

What is the defense clause?

A defense clause is an insurance provision stating that the insurance company agrees to defend, with respect to insurance afforded by the policy, all suits against the insured.

What defenses are often used against liability claims?

The most common negligence defenses are contributory negligence, comparative negligence, and assumption of risk.

Does an indemnification protect you?

You will have the option of absorbing these losses yourself or providing direct compensation to the person that was harmed by your action. The most important part of an indemnification clause is that it protects the indemnified party from lawsuits filed by third parties.